Citi Premier Card

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Citi has been pretty quiet this year when it comes to lucrative sign-up bonuses on their own ThankYou rewards cards. Earlier this year they launched new  category spend bonuses and decreased the value of points when redeemed for travel (from 1.33 cents a point down to 1.25 cents).

However, the sign-up bonus on the Citi Premier card – the premium Citi card earning ThankYou points – has been at 30,000 points for a while now, but  now you can earn up to 50,000 points worth $625 when redeemed for airfare. But there are some strings attached.

The bonus works a little differently than most, however. You earn 20,000 points when you spend $2,000 in the first 3 months of cardmembership, and then an additional 30,000 points within the first 3 months of your second cardmember year. So in effect, Citi is making you keep the card for at least a year and though the $125 annual fee is waived the first year, it is not waived the second year, so you will have to pay it to get the full bonus. Subtracting the annual fee from value of the entire bonus, this is about a $500 value proposition not including the points you earn from the spending requirements and whatever other purchases you make during the year.

Signup Bonus Details:
Earn 20,000 points after $2,000 in purchases within the first 3 months of account opening and an additional 30,000 points after $3,000 in purchases within the first 3 months of your second year of being a cardmember.

Fees:
$125, waived for the first year. No foreign transaction fees.

Category Spend Bonuses:
3X Points on Dining out and Entertainment and 2X Points on Airfare and Hotels. 1 point per dollar on other purchases.

Point Redemption Options:
ThankYou points are not as valuable as Chase Ultimate Rewards points or American Express Membership Rewards because their only transfer partner is Hilton, which are worth less than 1 cent each in my opinion.

When you use the points to book travel through thankyou.com you get 1.25 cents per point, so 50,000 points = $625 in travel, minus the $125 annual fee in the second year brings the total value to $500 for $5,000 in spend.

Hotel gift certificate options
Hotel gift certificate options

You can also redeem for gift cards at 1 cent per point, so 50,000 points = $500 in gift cards.

Value Proposition:
This card could be a good way to cover the costs of paid flights, because you earn miles and elite qualifying miles on flights redeemed through Thankyou.com. Earning 3x on Dining and Entertainment is like earning 3.75% back when redeemed for travel. Plus, the entertainment category is pretty broad: Sports Promoters, Theatrical promoters are classified as merchants that operate live theatrical productions or concerts and include ticketing agencies, Movie theaters, Amusement parks (including zoos, circuses and aquariums) are classified as establishments that operate parks or carnivals and offer mechanical rides and games and/or live animal shows. Tourist attractions and museums (including art galleries) are classified as establishments that operate attractions and exhibits for tourists. Record stores and Video rental stores.

The ThankYou Premier offers several bonus spending categories.
The ThankYou Premier offers several bonus spending categories.

I’d still rather have 2.14 Chase points per dollar for spending on my Sapphire Preferred for travel and dining, because I value those points conservatively at 2 cents apiece (due to their valuable transfer partners like United, Hyatt and Southwest), so that is a 4.28% back on dining and travel, though I’d only be getting ~2.7% back if I redeemed for flights and travel through he Ultimate Rewards travel portal (the equivalent of thankyou.com).

The other card I would compare this one to is the Barclaycard Arrival, which currently comes with a sign-up bonus of 40,000 miles when you spend $1,000 in 3 months. Those miles are worth 1 cent apiece when redeemed for travel and you get a  10% miles refund on travel redemptions, so it’s worth about $440 in travel redemptions. While that’s less than this Citi Premier offer, you do get the entire bonus all at once in when you meet the minimum spending requirement without having to wait another year and to meet another spending requirement, and the first year’s $89 annual fee is waived on this card. The Arrival also earns 2X miles per $1 on all purchases meaning it’s potentially a bigger earner than the ThankYou Premier depending on where your purchases are. So if you’re in the market for a new card with minimum cash outlay, this might be the offer for you.

So it all depends on what you want out of your points and which categories you spend a lot of money on, though I still think the Sapphire Preferred and Arrival are better overall earners and I wish the full 50,000 point sign-up bonus was available within a single year upon hitting the spending requirement.

Also check out these related posts:
Top Current Credit Card Offers With First Year Annual Fee Waived
Maximize Monday: Fixed-Value Credit Card Points Programs
Barclaycard Arrival World Mastercard Bonus Hits 40,000 Miles
Details on the Barclaycard Arrival Bonus Travel Category and Redemption Options

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The best beginner points and miles card out there.
Chase Sapphire Preferred® Card

NEW INCREASED OFFER: 60,000 points! With great travel benefits, 2x points on travel & dining and a 60,000 point sign up bonus worth up to $1,200 in value, the Chase Sapphire Preferred is a great card for those looking to get into the points and miles game. Here are the top 5 reasons it should be in your wallet, or read our definitive review for more details.

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More Things to Know
  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • Chase Sapphire Preferred named "Best Credit Card for Flexible Travel Redemption" - Kiplinger's Personal Finance, June 2018
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • No foreign transaction fees
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
  • No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards
Intro APR on Purchases
N/A
Regular APR
18.24% - 25.24% Variable
Annual Fee
$95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent Credit

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.